As geopolitical risks increasingly stalk developed markets, asset owners sifting through the noise for long-term trends believe a fragmented world is here to stay. We spoke to CalSTRS, OPTrust, PFA and USS about the impact on their portfolios.
Sarah RundellNovember 17, 2020
The reallocation of capital towards sustainable companies is happening in real time and will accelerate, according to Larry Fink who is investing in technology and people to develop systems that can prove “climate risk is investment risk”.
Amanda WhiteNovember 12, 2020
Tim Hodgson, co-head of the Thinking Ahead Group, goes through an elaborate exercise to determine how much of the climate problem the institutional investment industry owns. The first step, he says, in finding a solution.
Tim HodgsonNovember 9, 2020
New Zealand Super’s low-carbon reference portfolio has outperformed the original reference portfolio, adding NZ$800 million to the fund and providing evidence of ESG alpha. The low-carbon reference portfolio, that until now has had targets of reducing emissions intensity by 20 per cent and its exposure to potential emissions from fossil fuel reserves by 40 per cent, has added about 60 basis points per annum to performance since it was brought in.
Amanda WhiteOctober 12, 2020
Climate Action 100+ illustrates asset owners’ ability to come together to solve the tragedy of the commons, said Anne Simpson, managing investment director, board governance and sustainability at US pension giant CalPERS. She said once investors realise that risk and return comes from managing financial, human and natural capital then ESG became a fundamental part of investing.
Sarah RundellSeptember 11, 2020
The Harvard endowment is about half way through its transition to external investment management and will work with its service providers to implement the university’s new directive, to position the portfolio in line with net-zero greenhouse gas emissions by 2050.
Amanda WhiteMay 7, 2020
There is a lack of understanding in investment decision-making about how big the climate crisis is which could lead to investments and risks being mis-directed, according to Professor Cameron Hepburn, Professor of Environmental Economics at Oxford University.
Amanda WhiteApril 8, 2020